Service Properties Trust Completes Transaction with BP in Connection with BP’s Acquisition of TravelCenters of America Inc.

May 16, 2023

SVC Received $379.3 Million in Cash

Minimum Annual Cash Rents for 176 Travel Centers Set at $254 Million with 2% Annual Increases

Amended Leases Guaranteed by BP Corporation North America Inc. (A3 / A- Ratings)

Service Properties Trust (Nasdaq: SVC) announced today that BP p.l.c. (NYSE: BP) completed its acquisition of TravelCenters of America Inc. on May 15, 2023, and the previously announced amended lease terms between SVC and BP are now in effect. SVC received $379.3 million in cash as part of the transaction, including $188.0 million in prepaid rent from BP, $101.9 million in merger consideration for the 7.8% of the outstanding TA shares owned by SVC, and $89.4 million for certain tradenames and trademarks associated with TA’s business previously owned by SVC.

Annual minimum cash rents under the amended leases are $254.0 million, with annual 2% increases throughout the initial 10-year term and the five 10-year extension options. BP will receive monthly rent credits totaling $25.0 million per year over the 10-year initial term of the leases for the rent BP has prepaid. BP is now SVC’s largest tenant, leasing 30% of SVC’s gross assets based on SVC’s assets as of March 31, 2023, and the guarantor of the leases, BP Corporation North America Inc., is rated A3 by Moody’s and A- by S&P.

Todd Hargreaves, President and Chief Investment Officer of SVC, made the following statement regarding today’s announcement:

“We believe that the closing of the transaction will benefit SVC shareholders both from the $379.3 million in funds received and by the significantly increased credit quality of our largest tenant, as the amended leases are now guaranteed by an A3/A- rated subsidiary of BP p.l.c.”

About Service Properties Trust:

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of March 31, 2023, SVC owned 220 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of March 31, 2023, SVC also owned 765 retail service-focused net lease properties totaling over 13.3 million square feet throughout United States. SVC is managed by The RMR Group (Nasdaq: RMR), an alternative asset management company with over $37 billion in assets under management as of March 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. For more information, visit www.svcreit.com.

WARNING REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon SVC’s present intent, beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond SVC’s control. For example, Mr. Hargreaves states that SVC shareholders will benefit from the BP transaction; however, SVC may not realize all of the benefits it currently anticipates.

The information contained in SVC’s filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in SVC’s periodic reports, or incorporated therein, identifies other important factors that could cause differences from SVC’s forward-looking statements. SVC’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

Stephen Colbert, Director, Investor Relations
(617) 231-3223

Source: Service Properties Trust

Cautionary Language

The information appearing on SVC’s website includes statements which constitute forward looking statements. These forward looking statements are based upon SVC’s present intents, beliefs or expectations, but forward looking statements are not guaranteed to occur and may not occur. SVC’s actual results may differ materially from those contained in SVC’s forward looking statements. The information contained in SVC’s filings with the Securities and Exchange Commission, including under “Risk Factors" and “Warnings Concerning Forward Looking Statements” in SVC’s periodic reports and other filings, identifies important factors that could cause SVC’s actual results to differ materially from those stated in SVC’s forward looking statements. SVC’s filings with the SEC are available on the SEC’s website at www.sec.gov and are also accessible on SVC’s website at the following link: SEC Filings. You should not place undue reliance upon forward looking statements.

The documents provided in this archived section are provided for historical purposes only. The information contained in each document is accurate only as of the date each document was originally issued or such earlier date stated in those documents. Except as required by law, Service Properties Trust does not undertake any obligation to update any information contained in these documents. For current information about the company, please refer to our most recent public SEC Filings.

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